Any thing that a company owns are known as assets, they are further clasfied in Current assets and Fixed assets. Current assets are those assets which can be easily liquidated and have a shorter life as compared to fixed assets, Account receivable, cash and cash equlivents ,inventory are some examples of current assets. • Cash and cash equlivents: A specific thing within the sense of balance sheet of which accounts the worth of a business's possessions which can be funds or may be changed into funds instantly. Samples of funds along with funds equivalents are traditional bank company accounts, marketable securities along with Treasury bills. • Short term investment: Almost all corporations inside a sturdy money place use short-term assets accounts about the harmony linen. Which means that an organization can pay for to speculate unwanted profit futures and provides for you to earn larger interest when compared with just what would be gained from your standard savings account? • Net receivables: It is the amount that a business has to receive from its creditors, sometimes too much of the receivables can also create some problems in near future on the company in case the company liquidates. • Inventory: It is another name given to stock which is left at the year end. If the inventory is too high it might increase the cost for the company. • Other current assets: Are generally stated using a business's sense of balance linen, and they are an element of a business's full property. Minimal cash as well as assets could possibly be most notable physique.
Fixed assets are those which are not easily liquidated and have a life of more then 5 accounting period, i.e., bulding, plant, motor vehicle land and others. Long Term Investments: A common form of this type of investing occurs when company A invests largely in company B and gains significant influence over company B without having a majority of the voting shares....
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